How a family income benefit rider works
Life insurance benefits are usually paid out to beneficiaries in a one-time lump sum, though in some cases you may have the option of distributing benefits in installments. Based on the size of the death benefit or the number of months you’d like your beneficiaries to receive payments, you can determine the distribution plan that works best for your family.
Reasons for purchasing a family income benefit rider
If you want to provide a monthly income for your policy’s beneficiaries (usually your family), this rider is an effective way of making those arrangements. If the insured person is the family’s primary source of income, this rider can mimic a steady income for beneficiaries. If there are concerns about the beneficiaries’ ability to successfully manage money, this rider can help achieve those goals indirectly.
Family income benefit rider cost
The addition of a family income benefit rider may results in a slightly higher premium, though some insurance companies may not charge you for it.
Other types of insurance riders
Common types of insurance riders include: